Bond market has sights set on interest rate rises

The London bombings had only an initial effect on the UK gilt market which remains focused on a poss...

The London bombings had only an initial effect on the UK gilt market which remains focused on a possible interest rate rise in August, according to Andrew Tunks, head of fixed interest at Old Mutual Asset Managers. Tunks says that while the gilt market rallied quickly as rumours circulated on the morning of the London attacks the market soon stabilised. He believes the consensus of opinion holds that the decision by the Bank of England not to change interest rates, which was announced on the same day, was not affected by the attacks. In his view the overall theme at work in the mind of ...